Register Real Estate Advisors

WASHINGTON, D.C. (Mortgage Bankers Association) – Foreclosure and delinquency rates were down across the board for Texas in first quarter 2012, according to the Mortgage Bankers Association’s National Delinquency Survey, which was released Wednesday.
Texas’ overall delinquency rate dropped from 9.1 percent in fourth quarter 2011 to 7.3 percent in first quarter 2012, the lowest rate since second quarter 2008.
Mortgages seriously delinquent (90 or more days delinquent or in foreclosure) declined from 4.7 percent in fourth quarter 2011 to 4.4 percent in first quarter 2012.
Loans in foreclosure increased slightly from 1.8 percent to 1.9 percent. However, loans 90 or more days delinquent fell to 2.5 percent in first quarter 2012 from 3 percent in fourth quarter 2011 and from 2.8 percent in first quarter 2011.

March sales of single-family homes in Houston totaled 4,996, up 7.8 percent from March 2011. This marks the tenth consecutive monthly increase.     

Broken out by housing segment, March sales performed as follows:

• $1 – $79,999: declined 8.4 percent,
• $80,000 – $149,999: increased 3.5 percent
• $150,000 – $249,999: increased 19.7 percent
• $250,000 – $499,999: increased 12.1 percent
• $500,000 – $1million and above: increased 12.5 percent

At $227,270, the average price of single-family homes rose 5.7 percent from last March, resulting from a combination of increased sales activity among luxury homes and a decline in the sales of homes priced below $80,000. The average price achieved a March high but fell just shy of the historic level of $227,340 reached in June 2008. At $161,750, the median sales price for single-family homes climbed 7.8 percent year-over-year, also achieving a high-point for a March in Houston.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In March 2012, existing home sales totaled 4,088, a 6.3 percent increase from March 2011. The average sales price rose 6.5 percent from last year to $212,524 and the median sales price increased 7.4 percent to $145,000.

The number of townhouses and condominiums that sold in March declined 3.6 percent compared to one year earlier. In the greater Houston area, 374 units were sold last month versus 388 properties in March 2011.

The average price jumped 15.2 percent to $166,228 compared to March 2012. The median price of a townhouse/condominium rose 17.4 percent to $135,000.

Demand for lease properties persisted throughout the Houston market in March. Single-family home rentals rose 10.3 percent compared to one year earlier and year-over-year townhouse/condominium rentals increased 3.8 percent.

HOUSTON (Houston Business Journal) – Wood Partners LLC has begun construction on Alta Woodlake Square, a $32.4 million luxury apartment community in Houston’s Westchase District.  The 256-unit complex at 2630 Tanglewilde St. will have studio, one- and two-bedroom apartments. The property will also feature a pool, outdoor kitchen, gym, and club room.  Preleasing is expected to begin in March 2013, with move-ins beginning by June.

At the end of 2009, 10% of mortgages had at least 1-payment past due and another 5% of mortgages were in the foreclosure process.  At the end of the 3rd quarter of 2011 8% of mortgages had at least 1-payment past due and another 4% of mortgages were in the foreclosure process.  Currently, there are fewer homes being foreclosed on.  Many families are concerned about inflation in the US.  It has caused prices to rise throughout the country by about 64% over the last 20 years.  That’s an annual increase of 2.5%. An example that looks grim is that a person who retired December of 1990 on a fixed income with no cost of living adjustments would have 61% of their purchasing power as of December of 2010.  That surprising example keeps consumers teetering between purchasing homes and staying in their current homes.  The good news for Houston is that our current housing inventory has reduced, interest rates are low, and we have the most stable housing market in the country.  Consumers buying homes in Houston, Texas have a lot more buying power than home buyers in other areas of the country.

This Guest Post was written by Emma Summers and discusses the Houston Housing Market.

With a look at some of the top housing areas in a less than stellar overall market, Houston has continually ranked among the top of the list. Multiple Texas cities have been listed among the best markets, including Dallas and Austin as well. With a better outlook on jobs and an excellent eye towards new features and technology, expect the Houston housing market to continue to rank among the top of these lists.

Just recently, Forbes mapped out the top 10 housing markets in the nation with three different cities making the cut. While Dallas and Austin both made the top 10 list, they were each ranked considerably lower than Houston at spots 10 and nine. Houston came in at number three on the list, ranking behind only the Pittsburgh and Louisville markets. Some of the primary reasons for the high ranking were Forbes’ analysis of foreclosure amounts, to which Houston netted only 1.3 percentages. On the magazine’s housing opportunity index, the city notched a ranking of 73.2, which was considerably close to the top markets.

Statistics of home buys in the area have also contributed to the high rankings for the Houston area. According to the Houston Association of Realtors, sales are up in most of the brackets in comparison to last year. The figures showed a 19 percent increase in homes that ranged from $150,000 to $250,000. Also telling is the fact that sales for homes over the price of $500,000 were up by nearly 26 percent this July. In a market where some areas are experiencing overall drops of nearly 40 percent, Houston has maintained only a slight drop in overall sales. As a whole, home sales for the entire U.S. are down by 14 percent from 2010. Some experts believe that the area is seeing an increase, hopefully back towards where the market had been in 2009.

Area developers have also continued to boost their numbers in comparison to other cities because of s strong dedication to energy efficiency. Most builders have kept the new Houston area apartments, condominiums and houses along the Energy Star qualifications. Some area developers are exploring new irrigation techniques along with eco friendly building techniques.

Because the Houston area has stayed afloat with better than average employment numbers mixing with great new building features, expect it to continue to rise back to where numbers once were. Regardless of what the national market continues to do in the near future, Houston will likely remain among the top of the lists when it comes to analysis of overall housing markets.

This article was in the August 2011 Issue of the Houston Builder Magazine.  It gives some great information about the industry.

Dr. Ray Perryman, president of the economic and financial
analysis firm with Perryman Group, spoke to the approximately 560 guests at the
annual GHBA Mid Year Forecast Luncheon.
The following are key points made concerning the economy both nationally
and locally.

“In the third quarter of 2009, the Gross Domestic Product
(GDP) grew by approximately 1.6 percent.”
While that number represents a small jump, it was significant in terms
of the context of the downturn.  Dr.
Perryman explained of that 1.6 percent, 1.5 percent was car sales.”  This phenomenon was due to the government
rebate program ‘Cash for Clunkers.’

In the fourth quarter of 2009, the GDP grew by a high rate
of about 5 percent.  In the first quarter
of 2010, it grew by about 3.7 percent.
“That’s when we said the GDP growth was slowing down a bit,” Perryman
reported.  “And then the next quarter
(second quarter of 2010) was about 1.7 percent.”

Midway through 2010, Dr. Perryman explained that the media
was dramatizing the doom-and-gloom of the economy.  There were many reports circulating noting it
was slowing dramatically and speculating a double-dip recession.

“It was only about 2 percent the next quarter (third quarter
of 2010),” said Dr. Perryman.  “It rose
slightly the fourth quarter, just over 3 percent.”  In the first quarter of 2011, it dropped to
1.8 percent.

“I think close to 3 percent is something that Houston can
probably sustain, “ said Dr. Perryman.
He concluded it wasn’t a trendsetter, “but demonstrated slow, healthy
growth.”

“If you give Houston 6 to 9 months, we are going to have a
very strong couple of quarters and that will help us get back on track.”  The slow recovery can be attributed in part
to corporate America’s uncertainty, which has historically withheld about $600
to $700 billion in cash on any given day.
Dr. Perryman said today, corporate America is sitting on about $2.4
trillion in cash, which is about four times the normal amount.

Dr. Perryman concluded with the factors contributing to the
success of Texas.  They include our
robust mineral sector and a strong conservative banking industry.

“Another factor was that our housing industry was not dramatically
overbuilt.  We gained in round numbers
about 400,000 people a year.  On average
there are approximately 1,200 people a day moving to Texas,” Dr. Perryman
noted.

“If you add 400,000 people a day to an economy, you’re going
to need 150,000 to 160,000 housing units,” he said.  “At the peak of construction during this
mortgage crisis, Houston goes through approximately 215,000 houses.”

Comparatively, he explained that in 1983, when the state was
smaller and needed approximately 130,000 units, “We didn’t build 215,000, we
built 290,000.  This resulted in a huge
inventory that could not be absorbed.”

Dr. Perryman commended in this last recession, the builders
stopped building very quickly once the downturn was imminent.  The immediate response to the economy enabled
a much quicker absorption rate.

Perryman concluded by saying, “Nationally, the bottom line
is we are probably about 6 to 9 months waiting on any little spurt in
growth.  But overall, here in Texas,
we’ve done a bit better.”

By  David S. Jones, Senior Editor, Real Estate Center

Release  No. 17-0511

COLLEGE STATION, Tex. (Real Estate Center) — Texas’ economy is not only outperforming
the United States, but the state’s nonfarm employment is growing twice as fast.

Texas gained
254,000 jobs during the 12 months ending April 30, an annual growth rate of 2.5
percent, according to the latest Monthly Review of the Texas Economy produced by the Real Estate Center at Texas A&M University.
During that same period, U.S. nonfarm employment rose 1.1 percent.

The state’s private sector employment growth also was higher than the nation as a whole, 3
percent compared with 1.7 percent.

Texas’ seasonally adjusted unemployment dipped to 8 percent in April, from 8.2 percent
from the same time last year. Meanwhile, national unemployment fell from 9.8
percent to 9 percent.

“All Texas industries except the information industry had more jobs in April 2011 than a
year earlier,” said Center Research Economist Dr. Ali Anari, coauthor of the
monthly report.

Mining and logging ranked first in job creation during the period with 31,800 additions,
an annual growth rate of 15.9 percent. Jobs got a boost as the average number
of active rotary rigs increased from 668.7 to 848.1, according to Hughes Tool
Co.

The 24,500 new construction jobs (a 4.3 percent increase) ranked that industry second.
Gains came in building construction (200 jobs), heavy and civil engineering
construction (10,700) and specialty trade contractors (13,600).

Texas’ professional and business services sector added 54,200 jobs, an annual growth
rate of 4.3 percent. This included 46,900 jobs in administrative and support
services and 7,300 in professional, scientific and technical services.

The state’s education and health services industry added 49,600 jobs, an annual growth rate
of 3.6 percent. Health services accounted for 50,100 while education lost 500.

The state’s leisure and hospitality industry gained 30,400 jobs, an annual growth rate of 3
percent.

For the April-to-April reporting period, the trade sector added 41,100 jobs, up 2.5
percent. Jobs in this industry included 15,900 in wholesale and 25,200 in
retail. Trade is the state’s largest industry after government.

Other services (repair and maintenance; personal and laundry services; and religious,
civic and professional organizations) gained 9.100 jobs, a 2.5 percent annual
growth rate. Transportation, warehousing and utilities gained 9,200 jobs, a 2.2
percent growth rate.

All Texas metropolitan areas except Abilene had more jobs in April 2011 than they did in
April 2010. Petroplex Odessa ranked first in job creation (up 4.5 percent)
followed by petroplex Midland (up 4 percent) then Dallas-Plano-Irving (up 3.1
percent), Beaumont-Port Arthur (up 3.1 percent) and Amarillo (up 3 percent).
The statewide average was 2.5 percent.

Texas Industries Employment Growth Rate, April 2010 to
April 2011

1. Mining and logging: + 31,800 jobs (15.9 percent).

2. Construction: +24,500 jobs (4.3 percent).

3. Professional and business services: +54,200 jobs (4.3 percent).

4. Education and health services: +49,600 jobs (3.6 percent).

5. Leisure and hospitality: +30,400 jobs (3.0 percent).

6. Trade: +41,100 jobs (2.5 percent).

7. Other services: +9,100 jobs (2.5 percent).

8. Transportation, warehousing, utilities: +9,200 jobs (2.2 percent).

9. Manufacturing: +11,400 (1.4 percent).

10. Financial activities: +2,000 jobs (0.3 percent).

11.  Government: 2,300 jobs (0.1 percent).

12.  Information: -11,600 jobs (-5.9 percent).
Sources:
Texas Workforce Commission and Real Estate Center at Texas A&M University

Texas Metropolitan Areas Ranked by Employment Growth
Rate, April 2010 to April 2011 (in Percent)

1. Odessa 4.5

2. Midland 4.0

3. Dallas-Plano-Irving 3.1

4. Beaumont-Port Arthur 3.1

5. Amarillo 3.0

6. Killeen-Temple-Fort Hood 2.6

Texas 2.5

7. Fort Worth-Arlington 2.4

8. College Station-Bryan 2.3

9. El Paso 2.1

10.  Houston-Sugar Land-Baytown 2.0

11. Austin-Round Rock-San Marcos 1.8

12.  Corpus Christi 1.8

13.  Longview 1.7

14.  McAllen-Edinburg-Mission 1.5

15.  Victoria 1.4

16.  Tyler 1.4

17.  Brownsville-Harlingen 1.0

18.  San Antonio-New Braunfels 0.9

19.  Waco 0.9

20. Laredo 0.5

21.  San Angelo 0.5

22.  Wichita Falls 0.3

23.  Sherman-Denison 0.2

23.  Texarkana 0.2

23.  Lubbock 0.2

26.  Abilene –2.5

Source: Texas Workforce Commission

–30—

Note to
Editors

Additional
research information:

Dr. Mark
Dotzour, 979-862-6292 (chief economist)

Dr. Ali
Anari, 979-845-2094 (regional economics)

Dr. Charles
Gilliland, 979-845-2080 (rural land)

Dr. Harold
Hunt, 979-847-9021 (commercial)

Dr. James
Gaines, 979-845-2079 (residential)

Attorney
Judon Fambrough, 979-845-2007 (legal issues)

For
information on the Real Estate Center, contact Senior Editor David S. Jones at
979-845-2039 (voice), 979-845-0460 (fax) or d-jones@tamu.edu. Or contact Associate Editor Bryan
Pope, 979-845-2088 (office) or b-pope@tamu.edu.

Thousands
of pages of data are available on the Center’s
web site. News is
also available in its electronic newsletter, a twice-weekly e-newsletter RECON (with RSS
feed), a weekly Real
Estate Red Zone podcast,
on Facebook, daily NewsTalk Texas (with RSS
feed) and on Twitter. To request a free press subscription
to the quarterly flagship periodical Tierra
Grande magazine,
contact David Jones at d-jones@tamu.edu.

COLLEGE STATION (Real Estate Center) – Sales of existing single-family homes in Texas last month dropped 18 percent from a year ago, according to the most recent Multiple Listing Services (MLS) data compiled by the Real Estate Center at Texas A&M University.

Just over 18,000 existing single-family homes were sold last month.

The median home price dipped 1 percent to $145,700, and the state’s overall inventory was at 7.8 months.

April 2011 MLS data for many Texas cities are available on the Center’s website. Here is a sampling (data current as of today):

HOUSTON (Texas Government Insider) – The City of Houston announced this week
the formation of a new local government corporation, Houston First Corp., that
will incorporate the city’s Convention and Entertainment Facilities Department
(CEFD) with its existing government corporation that manages the city-owned
Hilton Americas.

The city’s George R. Brown Convention Center and other entertainment
facilities will now be controlled by the corporation.

Houston Mayor Annise Parker said consolidation of the CEFD into the Houston
Convention Center Hotel Corp. should save the city $10 million in the next
fiscal year.

Houston First Corp. would lease CEFD properties from the city for $8.6
million, payable during the next fiscal year. The corporation would also face
an annual lease payment of $1.4 million, with lease increases tied to the
Consumer Price Index.